A special purpose property is a unique property that was built to suit a specific purpose and, therefore, presents limited opportunities to be used in a way that was not originally intended.
Most of the time, a special purpose property needs significant investment to be converted to an alternative use, making most conversions financially unfeasible.
Properties in the special purpose group are, for example, churches, schools, manufacturing plants, prisons, museums, legislative buildings, recreational facilities and railways.
The cost approach produces the most accurate assessment for properties that are not actively traded in the market place due to their features or use, or where there is insufficient income and expense data available to effectively apply an income approach, or where the property is under construction.
Assessment methodology guides for special purpose properties are available in Reference Materials.